Investment management firm AEW UK REIT plc has announced the acquisition of the 6.04 acre Railway Station Retail Park in Dewsbury for a sum of £4.7m.
The purchase price reflects a low capital value of only £82 per sq ft and provides a net initial yield of 9.4%.
The park is fully let with a low average passing rent of £8.28 per sq ft, which the Investment Manager believes provides strong potential for rental growth.
Tenants include Danish furniture retailer, JYSK, Sports Direct, Mecca Bingo and KFC.
The park occupies a prominent location on the edge of the town centre within an established retail and leisure area.
Commenting on the sale, Laura Elkin, Portfolio Manager of AEW UK REIT said: “This latest acquisition supports our view that the current market continues to provide investment opportunities that deliver dividend accretive income streams while also providing future potential for capital growth.
“Our work undertaken on the tenants of the park has shown that they trade well from the location and we expect an attractive level of income to be sustained.”